CNH second quarter results point to 2010 growth
21 July 2010
CNH reported overall sales of US$ 3.9 billion in the second quarter, up +10.7% on the US$ 3.5 billion recorded for the same period last year. Operating profits jumped +105% to US$ 330 million, up from US$ 161 million 12 months ago.
Sales of the company's construction equipment in the quarter rose +44.4% to US$ 790 million, up from US$ 547 million last year and the division recorded a US$ 13 million operating profit against a loss of -US$ 94 million for the same period last year.
The company's outlook for the global construction equipment market is for an increase of +25 to +30% in 2010.
A statement said that the improved second quarter performance was attributable to increased sales volumes, a reduction in costs following restructuring and improved industrial economics as a result of reduced input costs.
A spokesperson said, "Despite the construction sector reporting an improved performance, conditions remain tenuous in developed markets, resulting in a material portion of the sector's industrial capacity remaining under-utilised, primarily in Europe.
"The sector continued to make good progress reducing inventory levels in North America and Europe to improve the working capital situation. Conversely, due to increased demand in Latin America, and particularly Brazil, capacity is being expanded at two manufacturing sites to meet projected demand and reduce manufacturing bottlenecks," said the spokesperson.